* Downtown business tax rate to fall 20 percent
* Property taxes remain frozen
* Arts funding increased

WINNIPEG: With the release of the City of Winnipeg's preliminary operating budget, Mayor Sam Katz has upheld the commitment he made to the Canadian Taxpayers Federation (CTF) during last summer's civic by-election to reduce business taxes and hold the line on property taxes.

"Mayor Katz has stayed true to his word and for that he should be commended," stated Provincial Director Adrienne Batra. In the 2005 budget, the city's current business tax rate will drop from 9.75 to 7.75 percent, for savings of nearly $2 million for business owners. "This is the first time Winnipeg business tax has been cut and although this is certainly a step in the right direction, it is unfortunate that only downtown businesses will be the beneficiaries of the reduction, added Batra.

For the second year in a row, property tax rates shall remain frozen, but a recent City of Edmonton property tax survey shows Winnipeg is still not competitive with other cities in Western Canada. "A property tax freeze is certainly welcome but it does raise the question as to whether or not Winnipeg can remain competitive with other cities like Saskatoon, Surrey and Edmonton who are offering lower municipal tax rates," said Batra. "Since the numbers presented today are only preliminary, the CTF will push for a reduction in the municipal tax rate, particularly since the administration is going to have savings of nearly $7.5 million through vacancy management."

Today's preliminary operating budget maintained front line services and provided increases to public works, community services and cultural grants. "For months we have heard the city is facing a $57 million cash shortfall, so why are there increases to arts and cultural grants That money should have been better spent on repairing our crumbling infrastructure," concluded Batra.

The CTF will make a pre-budget submission to Executive Policy Committee on March 14, 2005.